Skip navigation

Tag Archives: USDJPY

I wasn’t sure whether the FOMC will turn out like the BOE last month, but there was sufficient buzz in the market to suggest that it could be a volatile event.

I decided not to stay up for the action but instead place some one day vanilla options with the following details:-

EURUSD Call Option; Spot 1.1762, Premium; 40bps, Breakeven; 1.1802

USDJPY Put Option; Spot 113.05, Premium; 38bps, Breakeven; 112.67

AUDUSD Call Option; Spot 0.7610, Premium; 21bps, Breakeven; 0.7631

Decided to square all the three options as follows: –

EURUSD at 1.1830 for a trading profit of 28bps

USDJPY at 112.61 for a trading profit of 0.6 yen

AUDUSD at 0.7634 for a trading profit of 3bps

This whole exercise turned a small profit of 36bps……………aarrgghh…………the whole event turned out to be a lacklustre event.

Ok, I am closing my books for 2017.

Will put up the final performance figures for 2017 shortly.

 

As it turned out, the USDJPY never did have any legs, so the option expired with a loss of 0.30yen.

I am deciding to take a small punt and buy a one day call option on the USDJPY with the following details: –

Strike: 113.20

Premium: .030

Breakeven: 113.50

Let’s see.

4H chart shows that the USDJPY is about touching the 200DMA.

At this point, the USDJPY can rebound back to 114 or meltdown to 111.70, how will it move.

Is this a buying or selling opportunity?!

Let’s see whether it can defend the support level of 113.20?!

I totally missed this………………SHOOT!

Looking at the Daily chart, I noticed that spot crossed the 200DMA on November 4th at 0.7697.

Does it mean that the AUD is heading for a protracted softening?

I have already bought two call options with breakeven averaging 0.7710………about 130 basis points away right now………….hmmmmm……..will I have a chance in the next three weeks for the AUDUSD to recover?

Let’s see.

Spot currently at 112.71.

Looks like my put option expiring tomorrow will expire worthless and will take a hit of 1.03yen, the cost of the option.

Oh well, we win some and we lose some…………that is FX trading………….

The 4H chart seems to indicate a potential triple top; 110.88 – 110.58 and currently 110.50.

I decided to execute a two week put option expiring Friday, Sept 29th with the following details: –

Strike: 110.50

Premium: 1.03

Breakeven: 109.47

Target: 108.20

Let’s see what happens?!

The USDJPY call option expired on July 17th………..worthless.

Premium loss was 0.48yen.

Bought a USDJPY call option expiring on Monday, July 17th with the following details: –

Spot: 113.25, Premium: 0.48, Breakeven: 113.73.

Let’s see what happens?!

On July 3rd when USDJPY crossed 113, I decided to take profit on my 1 month USDJPY call option.

The 1 month call option had an expiry date of July 10 and a BE of 110.52.

I squared the option at 113.20 for a whopping trading profit of 2.68 yen!!!

Now to continue monitoring the outstanding 3 month call option expiring in September which is in the money now.